The precious metal, tracking the market sentiment was seen easing back on Thursday. Right after testing highs of 1500, gold is currently consolidating near the highs. This could possibly see either a renewed momentum building up or perhaps an impending correction. The US producer prices index report will be the only report coming out during the NY trading session today.
Can XAU/USD Post Further Gains?
The current consolidation could see further gains in store. However, a lot will depend on whether gold can break out convincingly above the 1500 handle. Given the fact that this is a psychologically strong resistance level, we could expect to see some downside. The recently breached support area of 1431 – 1428 will be the most appropriate downside target in gold.
